Budgeting-Your Relationship With Money

Would you Rather Tighten your Belt or Open your Mind?

After working with clients since 2005 as a budget coach I have found that the most definitive change happens when someone looks at their relationship with money. The irony of the situation is that while most people want more money, they aren’t comfortable managing it. If you don’t put intention into looking at what you are currently doing with your finances, how can you expect to get more?So what can you do to change your relationship with money?

If you cringe at the word “Budget” try thinking “Cash flow” instead. A budget for most people usually co-notates a restriction or compromise of what they want. Building a cash flow chart simply recognizes what money is really coming in & what is currently going out. From this foundation then you, your spouse, or business partner can have a common language so you understand where you are at & how to make it different. You can see if you have issues with income, debt, lifestyle, or unconscious spending: only after these are brought to the light can you make fun empowering decisions- rather than painful negligent ones.

What does this look like?

You might decide that you want to buy an espresso machine for $100 to save money…How you ask? Well this way a couple can save $10 a day if they are buying coffee out every day. In 10 days they have paid off the machine. In the rest of the year they save $3,500. This way they aren’t “tightening the belt” they are trading goals from unconscious spending to saving for a vacation.

The bottom line is the more you know about your situation, the less you will waste on debt & the more gratifying purchases will feel. Whether it is the large purchase or the everyday expense you have decided that that is what you want to spend your money on.